Huawei’s road to top $15tr digital industries market lies in the cloud
Launches, expansion and a strong push for cloud driven business in the face of large adoption of video services will guide Huawei through 2017.
Huawei’s ambition to disrupt markets is set to gain new traction as the company plans to expand its cloud portfolio to address the many untapped opportunities in the digitalisation of industries.
At an exclusive briefing ahead of the Mobile World Congress 2017, Ken Wang, president of global marketing and solutions sales for the Chinese giant, announced the company will be revealing “seven all-cloud solutions during MWC” in Barcelona later in the month.
Wang said that in order to support customers growth, the company will build out its cloud vision announced in 2016 to try and grab the largest stake possible from the 2025’s $15tr market related to the digitalisation of industries such as governments, energy, financial services, transportation and manufacturing.
Huawei’s plans rely now on its “all-cloud vision” which caters the ideas of service cloudification, operations cloudification and network cloudification.
He said: “This changes business models; changes how networks are deployed, and so on. It is a huge transformation.
“The three key things here are hardware resource pooling, fully automation of operations, and software deployment distribution.
“These are the three things we will be focusing more as we drive our customers towards new sources of revenue.“
Huawei, which has invested more than 15% of its revenues ($10bn) into research and development, according to Zhilei Zou, president of the carrier business group, is aiming at a hugely untapped market.
However, Wang warned the industry that the progress of the all connected world is approaching faster than expected and will be hitting in the next couple of years.
“In 2025, ‘things’ will be in real-time, on demand, all-online, DIY and social. We believe the new style of user experience, which we call Road, will become the new norm of the industry.
“There are limitless opportunities for digitalisation of industries here.”
One of the main sectors where Huawei sees an opportunity to tap into is the connectivity and communications verticals where 3.9 billion people are yet to be connected to the internet and 2.5 billion have no access to mobile services.
Within this segment, Wang labelled ‘video’, which is starting to drive more business through mobile devices, as “king”, with coverage, bandwidth and video services making up the crown jewels.
“[Video is] the next trillion-dollar market” that will transform the entertainment industry and communications sectors”, according to Wang.
In fact, internet video streaming and downloads are beginning to take a larger share of bandwidth and will grow to more than 80% of all consumer Internet traffic by 2020, according to Cisco.
Wang said: “Telcos have the natural advantage to take full opportunity to take advantage of video.
“More than 60% of traffic operators are reporting is video. Video from CCTVs, smart cities, OTT video, etc. This will become the next generation for growth for operators.
“Video for this year is the king.”
Huawei’s business roadmap
Building on this, Wang spoke of the company’s roadmap, which has been named “Road”.
“’Roads’ is new growth centred on business value. It is about maximising network value, making video a business success, reshaping B2B through the cloud, and bringing in the all clouds vision plus operations and networks.
“We will continue to discuss with our customers how they can tap into new revenue streams.”
Cloud is indeed the company’s main focus for both the short and long term, as business models look into cloud environments like never before.
Wang said: “Communication as a Service, Storage as a service, Everything as a Service; ultimately it is all owed to cloud.
“We believe this is a huge opportunity for the next decade.”
He took the example of 5G developments, which Wang stressed cannot be built from night to day and require a lot of preparation.
Huawei is set to use its ‘all-cloud’ vision in the 5G arena and recommends those in this market to have a coherent cloud architecture, bearer networks and adopt a data centre strategy early.
“You have to have the network architecture ready. We must to a lot of things to prepare for 5G. A data centre centric network must be deployed. A central, regional and edge data centre must be deployed.”
This then follows into the need to have spectrums ready, including channels cloudification. Lastly, Wang defends that businesses must prepare to a world beyond the IoT hype.
“Business ready means we need to try IoT business models, video business; we must be ready, have the people’s skills ready, the business ready.”
At MWC 2017 in Barcelona, Huawei is set to follow just that and wants to bring into the cloud debate as many parties as possible.
“During MWC, we will enhance the ecosystem – an open, collaborative and win-win ecosystem for all.
“It is about open source communities, business alliances, industry alliances, and developer ecosystems.
“We enhance the important of business alliances which will be highly localised due to local legislations and the need to adapt to a specific market.”
President Zou said: “No matter if it is Huawei, or other carriers: we cannot do it single handed, we need to all to work together.
“It is not about just needing people to make the cake, it is about having people to share the cake with.
“We should be confident in the strong growth of the industry.”